As farms become larger, many families conclude that perks must be limited and keep business more separate from personal life. Written for Farm Futures and published in the February 2024 issue. Most families get along great and, on most days, enjoy working together. This can lead the family to believe they are in alignment on essential issues. But, often, there is enough differences between some fundamental principles that someday will cause friction. Alignment around these principles falls under an underused area of transition planning called family governance. They are critical in keeping the peace and creating a strong family farm. ...
Category: Business Growth Strategy
Business Growth Strategy
Get a Better ROT (Return-On-Time)
There is a direct correlation between solid meetings and ROT. Written for MILK and originally published in the Nov. 2023 quarterly issue. The meeting room was quiet as the owners and the next generation entered. The meeting was supposed to start about fifteen minutes ago, but folks were slow coming in. No one was entirely comfortable. Everyone was thinking about something else outside, but one of the owners had called a meeting, so they all came. It was unclear what the meeting was about, but each person had an idea in their mind what it SHOULD be about. The last...
Business Growth Strategy, Succession Planning
Two Habits of Successful Business Families
The natural way of a family business is a decline over time. So, successful family businesses must take actions to counteract the decline. Written for Farm Futures Dec 2023. You have heard the adage. "The first generation builds it, the second generation maintains it, and the third generation loses it." This is not just an American problem; it is an international phenomenon. The decline of family farms is due to tendencies that repeat themselves. The natural way of a family business is a decline over time. So, successful family businesses must take unnatural or unorthodox actions to counteract the...
Business Growth Strategy, Uncategorized
Essential Skills for Leaders: Skill 1- STRATEGIC THINKING
There are 3 essential skills, beyond being great at on the technical side of things. Skill 1: Strategic Thinking Written for Progressive Dairy and originally published Nov/Dec 2023 Scaling up or even surviving in dairy requires three essential skills beyond being great at the technical parts of dairy farming, such as nutrition, breeding, etc. I will discuss the first skill - strategic thinking - now and expand on the other two in future articles. Dairymen and dairywomen might shy away from the word "leader." Few in the industry wake up, look in the mirror and think of themselves as leaders....
Business Growth Strategy, Uncategorized
Move from Vision to Reality – Strategic Planning part 3
Is everyone pulling in the same direction? Written for Farm Futures and originally published Nov/Dec 2023 "We're family, and we work together every day. We know what each other wants." This is often the unspoken thought for many farmers, and it's logical reasoning. However, this logic makes several assumptions that can lead to misaligned priorities, confused employees, and sometimes conflict. The problem arises not from what's talked about but what isn't. Specifically the vision for the future of the farm. We all know it's impossible to foresee the future, so why even try? It is more common than...
Business Growth Strategy, Uncategorized
Complacency can Kill a Family Farm
Disbelief and Inaction can result in disaster. Written for Farm Futures and originally published Oct 2023 The high-performance aircraft engine ran smoothly above the Rocky Mountains on a trans-mountain flight, and the weather was sunny and calm. Life was good. The pilot scanned the engine monitor, and it showed the #3 cylinder was a little hotter than usual, but not by much. After some adjustments to the engine, the cylinder was still running warm. Was the pilot imagining things? Perhaps the cylinder always ran this hot? The pilot told himself everything else looked good, so this little thing must not...
Business Growth Strategy, Succession Planning, Uncategorized
Why do People Resist Change – Part 2
Three types of Resistance to Change I don't like it. I don't understand it. I don't trust you. Written for MILK magazine and originally published Aug. 2023 The entire dairy industry is going through massive restructuring and change. These changes are forcing dairies to scale up to remain competitive, working with suppliers, finding labor, and finding a market for the milk. The changes are also coming from within as many dairies transition the business to the next generation. These changes are profound, and change is hard. Not every dairy will make the transition to the new dairy economy. While sad,...
Business Growth Strategy, Uncategorized
Core Values – strategic planning part 2
Using Core Values Understanding your farm's values creates clarity and alignment around what we care about at a gut level. Written for Farm Futures and originally published 6/28/2023. Last week I outlined the benefits of using formal strategic planning on farms. In addition to aligning generations as part of a transition plan, a strategic plan creates alignment and helps farmers be proactive versus reactive. Farmers tell me that strategic planning allowed them to jump on the right opportunities and hire the right employees faster because it was clear what they truly wanted. I have found that the more successful the farm, the...
Business Growth Strategy, Succession Planning, Uncategorized
Good Conflict is Necessary – Really, it is.
Good Conflict unearths all possible scenarios and the best solutions Written for Progressive Dairy and originally published June 2023. High-functioning family businesses need good conflict just as much as they need the right protocols for production. "I don't see it that way at all! I don't think you are seeing everything," a key employee emphatically exclaimed to one of the owners. Several long seconds passed before the owner quietly asked, "OK, how do you see it, and how did you come to your view?' The setting was a strategic planning retreat I was facilitating. This group included two owners and...
Business Growth Strategy, Uncategorized
Strategic Planning Part 1
What's the Plan? A good strategic plan allows for better and faster decision-making at all levels. Written for Farm Futures and originally published May 2023. Farms are busy places, and there is always more work than time in a day. One day and season runs into another; before you know it, it's time to start again. It's hard to think and plan for next week, let alone something longer. Yet some farms can plan and execute short, medium, and long-term plans and reap the benefits. The farms that execute run smoother, whether it is a dairy farm in New...